Holiday prices could soar next year, warns Ryanair boss

As 2022 bookings surge, there will be ‘about 20 per cent less short-haul capacity in Europe’

<p>Ryanair chief executive Michael O’Leary </p>

Ryanair chief executive Michael O’Leary

Holiday and flight prices could be “dramatically higher” next year due to a combination of reduced flights and increased demand, warned Ryanair’s chief executive Michael O’Leary.

Speaking to The Sunday Times, O’Leary said: “I think there will be a dramatic recovery in holiday tourism within Europe next year. And the reason why I think prices will be dramatically higher is that there’s less capacity.

“Take out Thomas Cook (6 million seats), Flybe – (8 million seats), Norwegian (nearly 24 million seats) — Alitalia’s reducing its fleet by 40 per cent. There is going to be about 20 per cent less short-haul capacity in Europe in 2022 with a dramatic recovery in demand.”

Ryanair has been reducing prices across the board this winter, said O’Leary, to “grab market share everywhere”. The airline has recently launched a raft of new routes for winter 2021/22 with prices from as little as £19.99.

Last month it was reported that holiday companies are seeing a surge in bookings for 2022 holidays, with travel website Host Unusual seeing enquiries up by 74 per cent on last year, and UK site Independent Cottages saying 25 per cent of their enquiries this summer were for 2022 bookings.

Host Unusual’s founder Alex Wilson said: “A year ago the emphasis was trying to find a much-needed last minute post-lockdown break, whereas this year it’s all about getting booked in early to avoid disappointment”.

A further surge in international travel bookings is expected if the UK’s traffic light travel system is scrapped in the next few weeks, as is being reported by several news outlets.

The news comes on top of fears that inflation will contribute to rising holiday prices - figures are expected this week showing that inflation rose sharply over the last month, in a trend set to continue for several months.

In July, O’Leary predicted a 20 per cent shortfall in seat supply “across the next two to three summers”.

He also suggested environmental taxes would add to the cost of holidays in the coming years, saying: “There will be a material shortfall in short-haul capacity and that, and environmental taxes, will increase fares.”

Register for free to continue reading

Registration is a free and easy way to support our truly independent journalism

By registering, you will also enjoy limited access to Premium articles, exclusive newsletters, commenting, and virtual events with our leading journalists

Please enter a valid email
Please enter a valid email
Must be at least 6 characters, include an upper and lower case character and a number
Must be at least 6 characters, include an upper and lower case character and a number
Must be at least 6 characters, include an upper and lower case character and a number
Please enter your first name
Special characters aren’t allowed
Please enter a name between 1 and 40 characters
Please enter your last name
Special characters aren’t allowed
Please enter a name between 1 and 40 characters
You must be over 18 years old to register
You must be over 18 years old to register
Opt-out-policy
You can opt-out at any time by signing in to your account to manage your preferences. Each email has a link to unsubscribe.

By clicking ‘Create my account’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Already have an account? sign in

By clicking ‘Register’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Register for free to continue reading

Registration is a free and easy way to support our truly independent journalism

By registering, you will also enjoy limited access to Premium articles, exclusive newsletters, commenting, and virtual events with our leading journalists

Already have an account? sign in

By clicking ‘Register’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Join our new commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in